EBA opens consultation on revised capital and liquidity decision standards

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Eba revised capital and liquidity standards

Highlights

EBA launched a public consultation on revisions to Implementing Technical Standards under Article 113, aiming to streamline joint decisions on prudential requirements.
Draft proposals introduce a single integrated risk assessment report and expand joint decisions to include Pillar 2 Guidance and leverage ratio-related requirements.
Consultation supports the EBA's efficiency campaign, implements Recommendation 2.4 of the authority's October 2025 report, and seeks comments by 4 January 2027.

Consultation scope and timetable

According to the European Banking Authority, it has launched a public consultation on targeted changes to the Implementing Technical Standards under Article 113 of the Capital Requirements Directive, with the revisions designed to streamline how supervisors reach joint decisions on prudential requirements for institutions.

The proposed changes aim to create a more holistic and coordinated assessment of prudential requirements and guidance, while simplifying documentation through a single, reduced and integrated risk assessment report. The authority also says the revised framework aligns the joint decision process with current supervisory practices, the updated Supervisory Review and Evaluation Process framework, and regulatory changes introduced since the standards were first adopted in 2014, including CRD V.

The draft revisions also incorporate qualitative supervisory measures more clearly into the process and expand the scope of joint decisions to include Pillar 2 Guidance and leverage ratio-related Pillar 2 requirement and guidance. Comments on the consultation are due by 4 January 2027 at 23:59 CEST.

The authority is also holding a virtual public hearing on 10 November 2026 from 10:00 to 11:00 CEST, with registration open until 9 November at 16:00 CEST. It says all comments received will be published after the consultation closes unless respondents request otherwise.

Supervisory efficiency and EU banking impact

The consultation sits within the EBA's broader campaign, "Simplifying to strengthen: building a more efficient EU prudential and supervisory framework", which supports its effort to improve the efficiency and effectiveness of banking regulation and supervision across the EU.

Those efforts draw on the work of the authority's Task Force on Efficiency and its report on the efficiency of the regulatory and supervisory framework, published on 1 October 2025. The proposed ITS revisions contribute in particular to the implementation of Recommendation 2.4 in that report, as the EBA seeks more consistent supervisory assessments and clearer communication of outcomes to institutions.

In our earlier coverage of euro zone lending and money supply trends, we noted that credit growth remained resilient even as lending to businesses cooled slightly, while household borrowing held near an early-2023 high. The same update highlighted a modest rise in M3 money supply, pointing to gradually improving liquidity conditions that help shape the backdrop for banks’ prudential and supervisory expectations.

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